Page 69 - Amata-one-report2020-en

BUSINESS OPERATION AND OPERATING RESULTS CORPORATE GOVERNANCE FINANCIAL STATEMENTS ENCLOSURES

Risk Incurred

The entrepreneurs’ factories which operate businesses in 3 industrial estates of Amata are the leading companies
from more than 30 countries have tendency to increasingly apply their head office’s circular economy policy with their
manufacturing processes, especially the companies which have chain values in many countries and their main customers
are located in the leading countries with circular economy. Consequently, the entrepreneurs’ factories in 3 Amata

industrial estates may reduce demand on usage of public utilities and industrial services. In addition, the entrepreneurs’
factories or the potential customers may need higher quality of public utilities and services or they may need new
services, such as clean energy, at higher proportion or may need manufacturing information which can be traceable.

Risk Impact

Therefore, the Company’s recurring income from providing of public utilities services and industrial services may
be directly affected and they may impact revenues from real estate sales and rental businesses in the future.

Risk Management

The Company has adjusted itself by planning to develop its utilities production processes and industrial service
provision to make them support circular economy, both in Thailand and in Vietnam, which conform to new requirements
and standards of the current entrepreneurs and prospect customers, as well as to develop potential of its personnel
to be in line with the business requirements as per circular economy concept. The Company also studied business

opportunities on new utilities demand which are consistent with the circular economy concept and upgraded provision
of new industrial services, such as ultrapure water, and demineralized water produced from treated water within Amata
Industrial Estates, and etc.

Risk from Outbreak of New Disease

In this globalization era, all countries in the world have shares in global supply chain and each country relates to

global value chain pursuant to its capability, so trading is linked throughout the world. Amata industrial estates in Thailand
and in Vietnam are manufacturing bases of the leading entrepreneurs from over 30 countries, which manufacture
and supply products to the countries worldwide. They are sources of the Company’s income from utilities and industrial
services including real estate rental in the industrial estates.

Risk Factors

The worldwide COVID-19 pandemic made the government of each country impose lockdown measures or
restrict travelling into the country which led to shrinkage of international trade and slowdown of global economy.
The manufacturing operators in Thailand, both importers and exporters, who are in global supply chain were directly
impacted from this situation. In addition, long-term impacts caused by New Normal will accelerate changes of global

trends in various aspects, such as products demand, trade policy, changing manner of supply chain, usage of
production labor, manufacturing innovation and technology and etc., and they may impact the manufacturing operators
within the industrial estates as they have to adjust themselves and prepare to handle future situations to make them
have adequate flexibility and can overcome difficulties from this situation. The manufacturing operators may have to
adjust their business operation policy or change their production processes or may temporary close their factories or
unable to keep on operating their business.

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